Bank of America Money Market Account

So you are wanting a tiered money market, FDIC insured, deposit account that allows easy access to your money? Well, Bank of America maybe the place to go. If this is what you are looking for, please read on. If it is not, then jump to my summary of Bank of America’s money market account and find out what I learned about one of the largest financial institutions in America. To see more of the best banks visit our homepage.

Features of Bank of America Money Market Account –

Yes, Bank of America does offer tiered interest rates so, in theory, you can earn more as your balance rises. However, at .08% APY on an initial deposit of $25, you will not be earning much initially. To be fair, this initial interest rate is better than Chase Bank. Ally or Capital One Bank both have over 10 times better APY rates and they are among the best interest rates for online money market accounts. Bank of America does offer a ‘rate bonus.’ This bonus rate is achieved by making sure you deposit a minimum of $250 into your account each month. This bonus rate would more than double your profits at .13% APY. The national average for money market accounts, according to bankrate.com is .80% so, still significantly more than what the bonus rate offers. You can come close to the national average if you have $100K to deposit. Hmmm . . . You can make unlimited withdrawals, deposits and transfers at a Bank of America ATM or banking center. Any other withdrawals (phone, internet, atm card or automatic transfer) are limited to 6/month. You may connect this account with your Bank of America checking account and use it as a source of overdraft protection.

Rates and Fees –

The tiered interest rates break down this way: up to $10K will get you .08%, from $10K up to $25K will get you .25%, from $25k up to $50k from at 0.3%, $50K and above will get you .40%. The bonus rates are 0.13%,  0.3%, 0.35%, and 0.45% respectively. A monthly fee of $10 will apply unless you link your money market account to your Bank of America checking account. The other way to avoid the monthly fee, is to make sure your balance does not drop below $5K.

Summary of Bank of America Money Market Account –

So, you have heard that tiered interest accounts are good; however, is the trade-off worth it? When other high yield money market rate accounts, such as Ally and Capital One, are truly high interest money market accounts, why would anyone deposit money in an account with such dismally low APY, even with the tiers? You can compare other high yield money market accounts on our website, or even watch some very informative bank review videos as well. If you are still interested in learning more, please see our full review of Bank of America.